Making the move to buy. Should you do it now?

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Published Date 12/11/2023

Every year real estate bloggers write about what happens each season. How the “buying season” begins with warm weather and lasts through the summer, and how people take their homes off the market during the winter holiday time.

According to Realtor.com’s Anne Miller, however, winter offers great opportunities for buying a house, especially for renters looking to become homeowners, growing families trading up to larger houses, and baby boomers seeking homes to fit their evolving lifestyles.

Housing choices during the late fall are still out there, making October and November great months to go house hunting. While December is usually sparse, you could luck out if that fits your timeline. Especially with new construction.

So what are the advantages to buying a home at year-end? Are there any? You bet. For one, tax savings. Closing escrow on a house on December 31 enables you to deduct mortgage interest, property taxes, points on your loan and interest costs. “These deductions are significant, especially in the early years of your loan when you’re paying off a lot of interest,” says Miller.

It’s also a time of year when sellers are especially motivated. Why? Because they are eager to enjoy tax savings on the next home they purchase. It’s that domino effect. “They may accept a lower bid in order to meet Uncle Sam’s deadlines,” says Miller. “However, if you’re in a strong seller’s market, you’ll want to be conservative and heed advice from your real estate professional.”

And how about those builders? They aren't just selling a house — they’re running a business, and most offer incentives to get buyers on contract. “If you’re buying a brand new house, there’s a good chance builders may push to close the books on their year—and meet quotas. They may offer upgrades or little extras to sell houses before the calendar turns,” Miller explains.

Ever think about how moving companies tend to be booked six weeks or more in advance during the busy summer months? Fall and winter, however, are a truck of a different color, as it’s usually easier to secure the services of a moving company or rental equipment on shorter notice.

You may not have thought of it this way, but if you’re renting, your monthly check goes toward something that will last you a month. You’ll never see any return on that money except having had shelter. Buying a house is an investment. Your monthly mortgage payment goes toward a roof that’s your own. Besides, landlords can increase your rent. Once you secure a mortgage, you can rely on consistent payments if you have a fixed-rate loan.

If you bothered to paint or update the rental you’re living in, remember that it wasn’t just an act of home improvement. It was an act of goodwill, and you can’t take any of what you’ve done with you when you move. Buying a home means you can modernize your kitchen, paint your home’s exterior a color you like, change your fixtures and replace carpeting with hardwood. No one can tell you not to.

Lastly, appreciate the appreciation that lies ahead. There’s that element that’s always present in the American Dream — that you can eventually sell something for more than what you paid for it. “In the beginning, most of your payment goes toward interest,” says Miller. “But gradually more will go toward paying off your principal, meaning you build up equity—or savings—in your home.” And as home values rise, so does your rate of equity. Happy New Year.

Realtor, TBWS

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